exercise 13-8 liquidity analysis and interpretation lo p3

4 Required information Exercise 13-8 Liquidity analysis and interpretation LO P3 (The following information applies to the questions displayed below Part 1 of 2 Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets oints Cash S 35,699 $ 41,729 $ 42,189 62,800 82,500 10,954 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 52,000 54,000 89,900 113,000 11,496 343,114 4,688 264,923 313,404 eBook Total assets 593,209 $ 511,387 $ 417,800 Liabilities and Equity Aceounts payable Long-tern notes payable secured by nortgages on plant assets Common stoek, $10 par value Retained earnings 88,153 56, 253 150,663 Hnt 113, 754 162,500 166, 292 119,971 162,500 140,763 94,180 162,500 104, 867 Total liabilities and equity Print S 593,209 $ 511,387 $ 417,800 The compamy's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: References For Year Ended December 31 2017 2016 $608,551 Sales $771,172 Cost of goods sold Other operating expenses Interest expense S 470,415 239,063 S 395,558 153,963 13,997 9,128 13,110 10,025 Income taxes Total costs and expenses 732,613 572,646 $ 38,559 Net incomes 35,905 Earnings per share 2.37 2.21 r aw 4 mortgages on plant assets Common stock, $10 par value Retained earnings 94,180 162,500 104,867 113,754 119,971 162,500 140,763 162,500 166,292 Total liabilities and equity 593,209 511,387 417,800 of 2 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales ar credit: For Year Ended December 31 2017 2016 Sales $771,172 608,551 Cost of goods sold other operating expenses Interest expense $ 395,558 153,963 13,997 9,128 470,415 239,063 13,110 Incone taxes 10,025 ook Total costs and expenses 572, 646 S 35,905 732,613 $ 38,559 Net income 2.21 Earhings per share 2.37 int int Exercise 13-8 Part 3 ences (3) Compute inventory turnover. Inventory Turnover /Choose Denominator: Choose Numerator: Inventory Turnover Cost of goods sold Average inventory Inventory turnover 2017: 97,750 $ 470,415 4.8 times 2016: 68,250 $ 395,558 5.8 times S Required information Exercise 13-8 Liquidity analysis and interpretation LO P3 of 2 (The following information applies to the questions displayed below,. Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 35,699 $ 41,729 42,189 52,000 54,000 4,688 264,923 89,900 113,000 11,496 343,114 62,800 82,500 ok 10,954 313,404 Total assets 593,209 $ $11,387 417,800 Liabilities and Equity Aeeounts payable Long-tern notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 150, 663 88,153 56,253 119,971 162,500 140,763 593, 209 $511, 387 417,800 113,754 162,500 166,292 94,180 162,500 104,867 Total liabilities and equity nces The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit For Year Ended December 31 Sales Cost of goods sold Other operating expenses 2017 2016 $ 771,172 s608,551 $ 470,415 s 395,558 239,063 13,110 10,025 153.963 13,997 9,128 Interest expense Income taxes Total costs and expenses 732,613 572,646 $ 38,559 Net incone 35,905 Earnings per share 2.37 2.21 ework Saved AMLO AAGMAAAAo anu eyuALy The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales an credit: For Year Ended December 31 2017 2016 $ 771,172 Sales 608,551 Cost of goods sold Other operating expenses $470,415 239,063 13,110 10,025 $ 395,558 153,963 13,997 9,128 Interest expense Income taxes Total costs and expenses 732, 613 572,646 $ 38,559 35,905 Net income 2.21 Earnings per share 2.37 Exercise 13-8 Part 4 (4) Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: Days' Sales In Inventory Choose Denominator: Days 365 Ending inventory 2017: Cost of goods sold Days' sales in inventory X 0 days x 2016: 0 days x of 13